Dzeko, 24, has been in Marbella for his club's warm weather training camp but it is now reported he has left his team-mates in order to travel to England.
It is anticipated the striker, who has scored 66 goals in 111 Bundesliga games for Wolfsburg, will undergo a medical prior to City's Premier League game against Arsenal on Wednesday night.
If his move is completed, Dzeko will become the most expensive Bundesliga player in history, surpassing Mario Gomez, who cost €30 million when swapping Stuttgart for Bayern Munich in 2009.
Dzeko's imminent arrival has led to speculation that Emmanuel Adebayor will be leaving the club on loan, while fellow striker Roque Santa Cruz also appears poised to exit Eastlands.
The Paraguay international is a target for former club Blackburn but says he is once again in talks with Lazio, having previously told the Italian club he did not want to consider a loan move.
"I am talking to Lazio and I can't wait to land in Italy and wear the blue and white shirt," he told La Repubblica.
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